1. Why should there be concern with insuring an Individual Retirement Account (IRA)?
A. To ensure that your IRA or your Qualified Plan (a pension plan, profit-sharing plan, and/or a 401[k] plan is properly protected and insured against depletion by medical and long-term care expenses. These expenses can extinguish an entire asset or assets of your estate in as short a time as one to three years.
2. Can an Individual Retire Account be protected, while assisting with long-term care considerations?
A. To protect an account is to purchase a long-term care (LTC) insurance policy to protect the IRA from loss due to the cost of long-term care. By way a yearly withdrawal from the IRA to pay for a long-term care insurance policy could protect the account holder and his beneficiaries should an LTC event occur.
3. Are there other benefits of a Charitable Remainder Trust (CRT) for long-term care needs besides the income benefit provided by the trust?
A. A charitable remainder trust can provide funding for two generations, such as a husband and wife as well as children. A charitable remainder trust would stay in existence until all of the family members have died, and would make payouts over all those years.
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